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Crime and Unemployment: Evidence from Europe

This paper investigates the impact of unemployment on crime using a country-level panel data set from Europe that contains consistently-measured crime and police force statistics. Unemployment has a positive impact on monetary crimes, and instrumenting unemployment with the exchange rate produces larger estimates than those obtained from OLS specifications. The unemployment rate is decomposed into various components such as gender-specific and education-specific unemployment. The analysis of specific population sub-groups’ unemployment reveals that about 65% of the overall impact of unemployment on crime is attributable to the unemployment of males with low education.

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File URL: http://bus.lsu.edu/McMillin/Working_Papers/pap09_13.pdf
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Paper provided by Department of Economics, Louisiana State University in its series Departmental Working Papers with number 2009-13.

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Handle: RePEc:lsu:lsuwpp:2009-13
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